BRIGHT PROSPECT

Waipa Post, Volume 47, Issue 3385, 26 October 1933, Page 3

BRIGHT PROSPECT

IMPRESSION OF TRADE TENDENCIES '*'" " ■•".•, ■':. y :."■ ':' . ■ /-W : -'-V ; ADDRESS BY, PROFESSOR TOOKER • A very sanguine view of the "prospects for New Zealand's export trade in the coming season was expressed by Professor A. H. Toeker in an address to members of the Canterbury Advertising Club on Monday. There was a growing feeling of confidence overseas, he said, and it seemed that there was an upward tendency in! pri<es,; which would once more make the exports of the Dominion profitable. • "At the present time there is growing up overseas a feeling, of confidence which, so far as I can discover, is not yet marked in New Zealanders," he said, "In England there has never been a time when the business community has not felt that Sb would |struggp.e througb. England has pinned her faith to one policy—easy and abundant credit and low interest rates. In February of v 1932, the Bank of England rate was 6 per cent., but in June of this year' it was 2, per cent. A Rising Curve

• "I have gathered the impression that the effect of this is being felt, and since my return, on looking through'the reports that have been waiting for me from various parts of the world, I find that the graphs show a bottom level in June, 1932, with a noticeably rising tendency m the last six months. ''Butter has risen to 102 s, where formerly it was 665. . People were afraid a little while-ago that butter would never rise again. Ido not know that any rigid control has been exercised to cause the change, but it will be very important to New Zealand if the price of 102 s is maintained. One effect of the low prices we have been passing through has been that New Zealand butter has found an extensive market in the English midlands, where formerly none" of it was sold." ' Everywhere at the conference be had met persons with a defence complex, said Professor Toeker. Each nation was concerned with defending its own people from the effects of the depression, and this was particularly strong in the field of agricultural produce, but now the' tendency was to restrict competition.* Profitable! Export Trade

' The Aspects" for vrool-looked exwere competing' products, tending to rise together, and cotton was rising. The Americans who were so busy pushing 5 up the price of cotton would be surprised to be told that their efforts would be carried over to wool, and so would help New Zealand. "Consequently the prospects of a

profitable export trade this year are good," Professor Tocker continued. "I know that last year prices showed a rising tendency in September, and fell later, and that butter always tends to be high in price in September, but though there are still some uncertainties, there is a more widespread sanguine opinion over the whole sterling area. In the past a measure of depression has always followed periods when the farmer's income has fallen, but equally there is no question that as export prices rise we must enjoy a substantial measure of recovery." Varying Effect of Crisis

Particularly noticeable during his tour had.been the fact that the effects of the depression had varied considerably in -different countries; said Professor Tocker. The fall *n the English national income since 1029 had been about 8i per ( cent., but in-the United States it had been 50 per cent, or more. In New Zealand the fall had been from 30 to 35 per cent. In countries dependent on the export of primary produce the effects had been particularly severe. Another factor was the relationship between prices gained for goods exported and the price paid for goods bought. In New Zealand things sold had fallen in price by 60 per cent., while that of purchases had fallen only about 20 per cent. In Sweden the price of exports had fallen less than the price of imports. Professor Tocker added that was heard of the Swedish monetary plan, but it appealed, from what he had been told by a Swedish expert, that the effect of this had been exaggerated overseas. Marketing Factors Froceding to a brief discussion of marketing factors in large .centres |uch as London and the American cities, Professor Tocker said that there was a bewildering volume of trade. In America he found that business men relied greatly on advertising as a means of selling their goods. They knew how to appeal to the market they wanted/The American pecxpfe had been trained to les'pwid to advertising, and were

much more regimented in many respects of life than people in other parts of the world. In business, however, it was necessary to remember that methods which worked well in one country could not necessarily be adopted without change in another. "In New Zealand we have a people who have stood up well to the depression, and it redounds to their credit," said Professor Toeker, in conclusion. "Yet they are more prudent in their purchasing 'than the average American or Englishman. The main impression that I have gathered from my world tour—as far as successful business is concerned—is that quality counts."